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Home News Israel

Major Israeli food retailers under scrutiny for suspected price-fixing

CEOs of Shufersal, Rami Levy, and other major Israeli supermarket chains are under investigation by the Israel Competition Authority for alleged collusion. All retailers vehemently deny allegations.

by  Hili Yacobi-Handelsman
Published on  11-11-2021 12:41
Last modified: 11-11-2021 12:48
Major Israeli food retailers under scrutiny for suspected price-fixingDudu Grunshpan

Shoppers in line at an Israeli supermarket on Sept. 25, 2021 | File photo: Dudu Grunshpan

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Heads of Israel's major supermarket chains are under investigation by the Israel Competition Authority on allegations of price-fixing.

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On Tuesday, the authority raided the offices CEOs of Shufersal, Rami Levy, Victory, and other major suppliers and brought them in for questioning.

The moguls vehemently denied the allegations on Wednesday at a Knesset Economic Committee meeting that discussed who let the cost of living in Israel get so high.

Shufersal CEO Itzik Abercohen denied coordinating prices with other retail chains. "Are you normal? No!" was his response to lawmakers' questions on the matter.

MKs accused Rami Levy, owner of a supermarket chain that bears his name, of deceiving the public, after which he called them "crazy."

"You will not speak disrespectfully like that here," said committee chairman Michael Bitton and expelled Levy from the meeting.

All businessmen were interrogated at the Competition Authority's offices on Wednesday.

Levy at the Knesset committee meeting (Oren Ben Hakoon)

Shufersal was already under fire in recent days after an investigation revealed that goods offered on its website catering to ultra-Orthodox consumers were cheaper than those on its regular website. The company suspended the page, but the incident had already brought Israel's entire food industry under scrutiny.

Lawmakers criticized not only the supermarket moguls but the Competition Authority itself, for failing to prevent a monopoly in the food industry.

Attorney Michal Cohen of the Competition Authority denied the claims and said the criminal investigation was the result of "strenuous and quiet preparation" that long preceded the meeting.

"It [the investigation] is being conducted now, tomorrow and the day after. Every word I say can disrupt the process, so give us some time," she said.

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Tags: price fixingRami LevyShufersal

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